What Is a Bad Check? A bad check refers to a check that cannot be negotiated because it is drawn on a nonexistent account or has insufficient funds. Writing a bad check, also known as a hot check, is illegal. Banks normally charge a fee to anyone who writes a bad check unintentionally. The punishment
What Is a Bad Debt Expense? A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems. Companies that extend credit to their customers report bad debts as an allowance for doubtful
What Is Bad Debt Recovery? Bad debt recovery is a payment received for a debt that was written off and considered uncollectible. The receivable may come in the form of a loan, credit line, or any other accounts receivable. Because it generally generates a loss when it is written off, bad debt recovery usually produces
What Is Badwill? Badwill, also known as negative goodwill, occurs when a company purchases an asset or another company at less than its net fair market value. This usually happens when the outlook for the company being acquired is particularly bleak. Key Takeaways Badwill, also known as negative goodwill, occurs when a company or asset
WHAT IS Bagging the Street? Bagging the street is a term that refers to an investing strategy that chases profit immediately prior to the execution of large-volume trades. Key Takeaways Bagging the street is a strategy an investor may choose to employ when they see a large block trade take place. Some in the industry see this
What Is a Bail Bond? A bail bond is an agreement by a criminal defendant to appear for trial or pay a sum of money set by the court. The bail bond is co-signed by a bail bondsman, who charges the defendant a fee in return for guaranteeing the payment. The bail bond is a
What is Bailee’s Customer Insurance? Bailee’s customer insurance protects businesses against damage, destruction, or loss of customer property while it is in their possession. A bailee may be any person or business who has been given temporary custody of someone else’s property. A dry cleaner, a repair shop, or a parking garage may be a
What Is a Bail-In? A bail-in provides relief to a financial institution on the brink of failure by requiring the cancellation of debts owed to creditors and depositors. A bail-in is the opposite of a bailout, which involves the rescue of a financial institution by external parties, typically governments, using taxpayers’ money for funding. Bailouts help to
What Is a Bailor? A bailor is an individual who temporarily relinquishes possession but not ownership of a good or other property under a bailment agreement. The bailor entrusts possession of the good(s) or property to another individual, known as the bailee. A bailment is a contractual agreement between the bailor and the bailee that
What Is Bait and Switch? Bait and switch is a morally suspect sales tactic that lures customers in with specific claims about the quality or low prices on items that turn out to be unavailable in order to upsell them on a similar, pricier item. It is considered a form of retail sales fraud, though
